Oil was little changed as falling US inventories outweighed the prospect of weak demand Reuters
SINGAPORE (Reuters) – Oil prices were little changed on Wednesday after falling the previous day, as falling inventories and expectations of supply disruptions due to sanctions on Russian tankers provided support amid forecasts of weaker global demand for the fuel.
futures were up 2 cents at $79.94 a barrel by 02:05 GMT, after falling 1.4% in the previous session. U.S. West Texas Intermediate crude was up 12 cents, or 0.15%, at $77.62 a barrel after falling 1.6%.
Prices fell on Tuesday after the US Energy Information Administration predicted oil would come under pressure over the next two years as supply is expected to outstrip demand.
However, the market found support on Wednesday from a drop in crude inventories in the US, the world’s biggest oil consumer, reported late on Tuesday by the American Petroleum Institute and expectations of supply cuts after the US Treasury Department imposed sanctions on Russian producers. oil and its so-called shadow tanker fleet.
“Oil prices were firmer in early morning trade in Asia today after API numbers showed US crude inventories fell more than expected over the past week,” ING analysts said.
Analysts added that crude inventories at the nation’s main storage hub in Cushing, Oklahoma, rose by 600,000 barrels, while inventories are still at historic lows. Cushing at the delivery point for WTI futures contracts.
The API reported that U.S. crude oil inventories fell by 2.6 million barrels in the week ended Jan. 10, according to market sources citing API data. They added that gasoline stocks rose by 5.4 million barrels, while distillate stocks rose by 4.88 million barrels.
A Reuters poll showed U.S. crude inventories fell by about 1 million barrels in the week to Jan. 10, ahead of an upcoming report from the Energy Information Administration, the statistics arm of the U.S. Department of Energy, at 10:30 a.m. EST (1530 GMT ) on Wednesday.
In its report, the EIA expects Brent prices to fall 8% to average $74 per barrel in 2025, then further decline to $66 per barrel in 2026, while WTI will average $70 per barrel in 2025 and fall to $62 dollars next year.
Global demand is expected to average 104.1 million barrels per day in 2025, down from a previous estimate of 104.3 million barrels per day, according to the EIA. That would be less than the supply forecast for oil and liquid fuel production of an average of 104.4 million bpd in 2025.
